One issue that is missing from this discussion is licenses. The Scratch
1.4 source code is available under two licenses, as explained here:

http://info.scratch.mit.edu/Source_Code

In addition, the Scratch trademark imposes additional restrictions even
if you select the GPL 2 option. A very important part of the Scratch
ecosystem is the ability to upload projects to:

http://scratch.mit.edu/

There are already 4.5 million projects there and they can be played
using a Java based viewer, downloaded to be used in the Squeak based
Scratch 1.4 or in the Flash based Scratch 2.0. So how you can exchange
projects with other versions is a very, very big deal for the MIT group.
I added a small feature for a client (support for special hardware) and
had to use the Scratch Licensed version which can't upload to the site
(and the client had to use a different name and say it is "based on
Scratch" instead of "is Scratch"). The reason for this is clear: if my
client uploaded projects to the site they wouldn't work when downloaded
by other Scratch users.

Do Phratch and NuScratch use the same license? If not, this shouldn't be
hard to fix if they were to be merged. But for just sharing code it
doesn't matter.

-- Jecel